The deal was initially announced last December, and it triples the employee count at Philadelphia Financial while growing the value of policies it administers many times over.
None of the workers are based in Connecticut, with all 81 employees at Florham Park, N.J. Employees were offered comparable positions with Philadelphia Financial, bringing that company's total workforce to 115 from 34.
"The transaction is consistent with The Hartford's sharper focus on its core operations," said David Bedard, executive vice president at The Hartford. The core includes property-casualty, group benefits and mutual funds, all of which have been more profitable and less volatile than other business lines. The Hartford is selling off its individual life-insurance business, retirement plans and Woodbury Financial Services brokerage.
In April, The Hartford sold parts of its individual annuity business to Houston-based Forethought, a financial services firm, for an undisclosed price. The Hartford had planned to halt new sales of individual annuities in April. Forethought now sells annuities that are underwritten and issued by The Hartford and reinsured by Forethought until the acquisition closes. After the acquisition closes, Forethought will issue the annuities.
Reinsurance Group of America, Inc., provided financing to Philadelphia Financial for the transaction.
Philadelphia Financial was formed in 1996, sold to the Phoenix in two parts until The Phoenix Cos. of Hartford owned all of it in 2003. On June 23, 2010, Philadelphia Financial became independent with capital from its new majority owner, Tiptree Financial Partners, a diversified financial services holding company that is mostly owned by major financial institutions, including J.P. Morgan Chase & Co., Bank of America, UBS and others.
At the time it became independent, Philadelphia Financial had $3.5 billion in assets under management. It focuses on ultra-high-net-worth individuals — typically someone who has between $50 million and $100 million of investable net worth. The company offers those investors private placement of money into insurance products.
Philadelphia Financial now administers more than $40 billion in insurance policy accounts.